STEPH G Jeans

“Fashion at its Revolution”

Product/Brand Idea:
This brand is launched to actually remove the strong
perception of the people that Pakistani goods are of low quality and
outdated fashioned.
 The Institute of Management Sciences

Group Members:
Umer Farooq (083314)
Mohsin Ihsan (083334)
Rizwan Sarwar (083333)

Submitted To:

Sir Aitzaz

Submission Date:

16/11/2009
 Acknowledgment

We thanks to Almighty who made us able to complete

this task in the obedience of Sir Aitzaz.
We thank our teacher who made us able in this field of business of
taking decisions and analyzing the company’s marketing
department.
 List of contents
Mission statement 6
Values 7
Introduction 8
Goals & Objectives 9
SWOT Analysis 10
Segmentation 12
Targeting 12
Marketing Environment 13
Micro Environment 14
Company 15
Suppliers 15
Marketing Intermediaries 16
Competitors 16
Customers 17
Macro Trend Analysis 18
Demographic 18
Economic 19
Natural 19
Technological 20
Political 20
Characteristics of Target Market 20
Target Market of Jeans 21
 Demographic Description 21
Geographic Description 22
Behavioral Description 22
Product Description 22
Product Usage 22
Purchase Influence 23
Life-Style of Users 23
Market Attractiveness Factors 24
Competitive Position Factors 25
Opportunities for Competitive Advantage 25
Firm and Competitors Capabilities and Resources 26
Impact 27
Conclusion 31
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MISSION STATEMENT

"To provide a unique, innovative and desirable fashion

environment to the society, to provide comfort with no
compromise on quality and to stay in step with fashion trends for
customers"
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VALUES

Our values are fundamental to our success. They are the

foundation of our company, define who we are and set us apart
from the competition. They underlie our vision of the future, our
business strategies and our decisions, actions and behaviors. We
live by them. They endure.
Four core values are at the heart of STEPH G Jeans.:
Affordability, Originality, Excellence and Courage. These four
values are linked as we see a story of how our core values work
together and are the source of our success.
8

Introduction:

STEPH G Jeans was established in September 2009. It was

founded by 3 partners Rizwan, Mohsin and Umer in Lahore,
Pakistan. The Head office of STEPH G Jeans is located in Liberty.
The manufacturing units are located at Raiwind Road Lhr. There is
an intense competition of sellers of jeans in market. STEPH G
Jeans has to compete with brands such as Diesel, Lee Jeans, Calvin
Klein and more popular and leading brands in Clothing industry.
The main idea of introducing STEPH G G Jeans is to change the
strong perception of customers that the Pakistani Brands are low
quality and obsolete fashioned. The company manufactures Jeans,
Jackets and sportswear for men, women and children. The
company’s outlets are located in Y Block (Defense Housing
Authority), Siddique Trade Centre (Main Boulevard), Panorama
Shopping Mall (Mall Road Lhr.) and in Pace (Gulberg II near
Hafiz Centre). The company is seeking to open more outlets in the
areas Fortress Stadium Lhr. and Moon Market (Iqbal Town Lhr.).
The main target customers of company are teens and youngsters.
The company is using differentiated (segmented) marketing-
strategy.
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Goals & Objectives:

Following are the objectives of company;

1) products should be unique in style and fashion

2) to provide customers with latest fashion
3) products should be innovative to attract customers
4) the products should be good enough quality wise
5) the firm’s technology should match with international
standards
6) customer satisfaction and loyalty is our focus point
7) to change the false perception of customers of Pakistani
products
8) to capture 7% of market share till the end of year 2010
9) to promote its sales to 60% at the end of year 2010
10

SWOT analysis

SWOT analysis means Strengths, Weaknesses, Opportunities, and

Threats to a company.

Strengths:

• Innovative fashion that fulfills the needs of customers

• STEPH G employees are fully corporative and friendly with
customers
• STEPH G provide all types of men Jeans
• Up-to-date technology
• No compromise on Quality

Weaknesses:

• Competition available in their price range

• Strong brand image of international jeans brands
• Electricity and gas shortage
• Increased taxes and interest rates
• More opportunities are provided to international companies
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Opportunities:

• They could expand more into Women's jeans (right now they
mostly do men’s)

Threats:

• The transportation costs will be higher with the increase in oil

costs. If they are unable to pass on the increased costs in the
form of higher prices they will have decreased margins.
• Terrorism is a major threat to the company in Pakistan
• Due to international pressures local companies are not
growing
• Political instability
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Segmentation:
The Clothing industry is segmented into following four
segments;
Customers that lie in age group of
1) 11 to 14 years
2) 15 to 25 years
3) 26 to 40 years
4) 40 to 45 years

STEPH G is segmenting the market based on age factor because

clothing specially Jeans are depends upon the likes and dislikes
according to age.

Targeting:

From above mentioned 4 segments, STEPH G has targeted

only two segments;

1) 15 to 25 years (students)
2) 26 to 40 (professionals)

As these segments are the basic and true customers of Jeans wear,
which include both males and female sexes.
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Marketing Environment:

The environment of a company includes the actors and forces that

affect its performance. The marketing environment is divided in
two parts;

1) Micro environment:

These are the actors which are close to the company that affect the
company’s ability to serve its customers. It includes company,
suppliers, market intermediaries, customers, competitors and
publics.

2) Macro environment:

Larger societal forces that affect microenvironment. These forces

are demographical, economical, natural, political, technological
and cultural environment.
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Micro environment:
The micro environment of the company consists of following
actors;

1) The company
2) Suppliers
3) Marketing intermediaries
4) Competitors
5) Publics
6) Customers
15

Company:
The company is divided into following departments shown
by fig;

There is a proper coordination and communication system

among all the departments so that employees are working as a team
and they are satisfied and contributing their best efforts to raise the
standards of the company.

Suppliers:
The production of jeans includes the ingredients like fabrics,
buttons, zips and machines for the production of jeans. Machines
we import from Germany and Japan. Our main fabric suppliers are
16

Nergis Textile Mills and some of the material like zips and buttons
are also supplied by Lisa Manufacturers.

Marketing Intermediaries:

Our main market intermediaries are our distributors,

wholesalers and retailers. Our financial intermediaries include
RMU Bros. and Askari Bank.

Competitors:

Being an introducing brand in Clothing industry STEPH G

Jeans has to compete with pre-established brands. It has to make its
impression in the minds of customers and get advantage on its
competitors.
The main competitors for STEPH G are Diesel, Lee Jeans
and Calvin Klein. As these brands have a good perception and a
good position in customers’ minds that’s why the company’s
competition is very strong.
All these brands are providing great varieties in Jeans
clothing like there are several types of Jeans pants i.e. Blue Jeans,
Straight Cut Jeans, Bell Bottom and their price ranges has also a
good impact on competition.
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There products are in many categories of price and quality

combination that provides a thrust to the competition.
STEPH G Jeans is also launching the most demanded and
upcoming fashioned products like Flare Cut, Boot Cut, Casual
Jeans and many more products are there to compete with so
established brands.

Customers:

Customers are the largest asset of a company so they should

be chosen very carefully and decisions relating to them must be
backed by a good decision maker.
STEPH G Jeans is actually using the Segmented Marketing
Strategy that is there are some portions of market that are mainly
targeted.
The segment of age differences 15 to 25 years is the most
effective and valuable for the company as because they wear jeans
wears for their casual use, going to college, for fashion and what
they desire.
26 to 40 years age ranging customers are those that are
professionals and wear jeans for only for the sake of rest because
always in a formal dress, they become tire and bore so they come
to Jeans clothing.
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MACRO TREND ANALYSIS:

DEMOGRAPHIC ENVIRONMENT

• The study of human populations in terms of size,

density, location, age, gender, race, occupation, and other
statistics is know as demography.
• Demographics of our company are as follows:
• Different price ranges and offers for various income
groups
• Teens and youngsters age bracket: 15-25 & 26-40 years
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• We develop products for both Male and Female

ECONOMIC ENVIRONMENT

The economic environment consists of patterns that affect

buying power and patterns. The economic environment is
characterized by more consumer concern for value and shifting
consumer spending patterns. Today’s Squeezed consumers are
seeking greater value, which is the right combination of good
quality and service at a reasonable price. The distribution of
income is also shifting. So our company has tailored our market
offers to two different markets which are: “the affluent” and the
“less affluent”

NATURAL ENVIRONMENT
Natural environment for jeans market is favorable because
the customers are responding to it positively. Jeans is liked heavily
among the children, students, sportsmen, youngsters and the
models in fashion industry.
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TECHNOLOGICAL ENVIRONMENT

STEPH G jeans are creating new technologies, new products

and market opportunities in order to attract customers and defeat its
competitors.

POLITICAL ENVIRONMENT
There is political instability and terrorism in Pakistan. When
the reign of one government is finished the new government
changes all the plans and actions of the previous government. Due
to these factors interest and tax rates changes and the rate of
development decreases. Secondly the government of Pakistan is
not encouraging and promoting the Pakistani companies to
compete with global companies. International pressure is also a
hurdle in this regard. All these factors are hurdles in the promotion
of Pakistani products.

Characteristics of Target Market:

Internationally defined target market for jeans is 12-30 years

age group, but due to high percentage of teenagers and youngsters
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present in Pakistan’s population, we have revised our target market

as follows,
• Students with age group 15 to 25
• Youngsters lying between 26 to 40
• Those who are seeking their education and those who
are at the end of their education and beginning their careers.
• Quality conscious
• Fashion conscious.
• Parties and fun loving people
• No specific income group
• People wear jeans for these main reasons:
• Fashion
• Durability
• Quality
• Image

TARGET MARKET OF JEANS

Demographic description:
• 15 to 25 years old & 26 to 40
• Both male and female
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• Majority constitutes of school, college and university

students.
• Fresh employees and married people are also a small
part of the target market.
• Taste of fashion plays an important role for buying
jeans.

Geographic description:
We are initially targeting Lahore in our first stage but our
final target is to go all along the country and all around the Asia.

Behavioral description:
We want to fulfill our customer’s preferences for:
• Quality
• Fashion
• Handsome look
• Problem avoidance
• Reliability

Product descriptions

Product Usage:
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• Very frequent use of the jeans on almost all of the

major occasions including Eid, Parties, and other important
Festivals and Events.
• Heavily used by the school and college students.

Purchase Influence:

Purchasing decision making is based on individual

preferences which can lead to the same product among other
individuals as well. For instance if a youngster purchase a
particular brand of jeans he/she can influence his or her friends or
relatives to purchase the same product.
Word of mouth is also an effective means of promoting sales of
any product.

Life Style of the Users:

Life style does matter a lot on the purchase of a product. For

example if a student prefers jeans in his life style then his
obviously his consumption for jeans is certainly more than a person
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who wears jeans occasionally. Similarly the social class level also
matters in the purchases.
The upper class usually go for the quality, fashion and status while
the lowers are more conscious to price.
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Market Attractiveness Factors:

• Differentiated cuts and styles of STEPH G jeans allow us to

provide a handsome look to our customers.
• The company can make exclusive designs of STEPH G jeans
for showbiz and fashion industry and by doing advertising of
STEPH G jeans through actors, singers, sportsmen and other
stars; they can heavily attract public to buy STEPH G jeans
and ultimately the company will going to be one of the most
populous company of the country.
• Current sales of STEPH G jeans are very low. The price
ranges are actually targeting the upper class of the target
market while the majority class of the target market lies in the
lower and lower-middle class. So there is a golden
opportunity of capturing the rest of target market. At the
present, only 10% of the potential target market is being
attracted. So we can also attract rest of the market through
advertising and other effective marketing tools.
• Growth rate is only 8% per year which can increase if
effective marketing tools are used and implied in an efficient
and effective manner.
• Expansion into related products such as: Kurta Shalwar,
Shalwar Kameez, Sherwani, Wedding dresses, Pant Coats,
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Ties etc can give us strong market share and growth

opportunities and make our image and brand stronger and
popular.

COMPETITIVE-POSITION FACTORS:

Opportunities for competitive advantage:

• Differentiation based on quality, style and fashion make
advertising highly efficient in order to create a unique brand
in the perception of customers.
• Pakistani products do not meet quality and durability, so
customer’s loyalty is not guaranteed. As we are offering
quality products so our customers will remain satisfied and
loyal to us. This factor will increase the sales and share of our
company and make us able to compete with others.
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Firm and Competitors capabilities and resources:

• Local companies are making minimal use of advertising and

other effective marketing strategies to promote their products.
We can make better use of advertisements and other
marketing strategies to promote our brand in the country.
• Imported jeans are based on few distributors importing them.
So by strong distribution we can prevail over the imported
garments purchased in our country.
• Reliability on imported products is very high and the local
brands are very weak. By creating awareness of our brand
through efficient and effective management of 4 Ps the
targeted market share can be achieved.
• Imported jeans such as “levis”, “Gucci Armani” and others
are only targeting status conscious class, while we are
focusing on both upper and middle classes so we can win the
hearts of the majority by using effective marketing tools.
• Our company is technologically advanced so our production
capacity is up to the mark.
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IMPACT

From the above explanation we come to know that all the

factors plays equal role in the development and growth of the
company. We cannot neglect the importance of any single factor.
All the groups of the company that is top management, finance,
research and development (R&D), purchasing, operations, and
accounting work together with diligence, hard work and as a team
only then the company is able to progress and go around the globe
successfully.
Suppliers form a very important link in the company’s overall
customer value delivery system. They provide the resources
needed by the company to provide its goods and services. If the
suppliers of the company are not loyal to the company then they
can seriously affect the market. It is necessary that the company
should establish healthy and good long lasting relationships with
the suppliers so that the suppliers provide the needed resources in
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time, sufficient in quantity and of the good quality and they shall
remain faithful to your company in delivering supplies.
Most marketers today treat their suppliers as their partners in
creating and delivering customer value. Their must be a good
communication channel between the suppliers and the company.
STEPH G jeans have a separate department for that named as:
“supplier development department” which helps to make good
relations between the suppliers and the company. It has also
created a website to navigate the complex buying process.
Secondly your “competitors” both direct and indirect heavily
have an impact on your overall activities. You have to see and
watch all the activities and strategies of you competitors, what new
strategies they are developing, their products, their plans, their
prices, their services, their new ideas, their competitive advantages
over your products, their advertisement and marketing mix tools
and tactics. You have to carefully analyze and observe all these
measures in order to compete, survive and defeat others. You have
to deliver better products and services than your competitors with
greater customer value and satisfaction. Direct competitors have a
direct impact on your progress in the sense that they want to
compete your company by raising quality, delivering greater
customer value and by effective marketing strategy than yours.
30

Indirect competitors can attract more customers than yours by

keeping low price strategy and can made cheaper products to
attract all the lower and middle class community. They can make
your share and growth down in the market if you do not keep in
touch with their plans and strategies.

“Customers” are the key to success. The company must have to

identify its target market. What are their customers, what are their
needs, wants and demands? What is the focus of the customers?
Either they are price, brand or quality conscious? Or either they
want all these items means that they want good brand and quality
at a reasonable price.
Secondly the company must have to segment its market
according to segment variables for consumer markets which
include: geographic, demographic, psychographic and behavioral
segmentation.
Demographic segmentation is more important factor and can
easily be calculated and observed.
Segmentation based on age, gender, family size, life cycle etc
are effective measures to segment the market. For example if we
want to introduce a new brand of jeans we have to analyze the age
group of the people who like and wear jeans, their gender and the
31

life style of the people etc. how often do they wear jeans and what
characteristics in the jeans do they want.

Income must be carefully analyzed because purchasing power is

heavily dependent on that. You cannot introduce a status oriented
product to the people belonging to a lower class which are not able
to purchase these products.

Gender and brand image also matters a lot because if you

introduce a Gillette product which is typically a men shaving items
manufacturing company. If we introduce Gillette beauty cream for
women then certainly it do not work and your product will going
no more to be popular.
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Conclusion

So from all of our above discussion and explanation, we

conclude that:
If a company wants to reach the heights of glory, it must have to
focus strongly and efficiently on its customers needs to create
greater customer value, loyalty and satisfaction
&
Carefully analyze the strategies of its competitors in order to
develop and use more efficient marketing strategies than its
competitors for greater growth and market share and to keep pace
with the modern trends.